European Union leaders sealed a new fiscal pact ensuring tougher budget discipline but failed to agree on a treaty change to enshrine the rules, meaning a deal may now involve the 17 euro zone nations plus any others that want to join, diplomats said. An agreement involving all 27 EU members fell through - raising the prospect of a two-speed Europe - after British Prime Minister David Cameron demanded concessions that Germany and France were not willing to give, one of the officials said. "We've always said we would do it at 17 if it didn't work at 27. That's what happened," one senior EU diplomat told Reuters. ... (full story)